Your monthly mortgage payment is probably one of the most consistent things in your financial life. But many homeowners don't realize that a few small adjustments to that payment can shave years off their loan and put thousands of dollars of equity back in their pockets.
Here are three strategies to help you lower your principal loan balance and pay less interest over the life of the loan without drastically changing your cash flow:
Bi-Weekly Payments: Split your monthly payment in half and pay that amount every two weeks. With 52 weeks in a year, you'll make 26 half-payments, totaling 13 full payments, with that extra payment applied solely to your principal each year. One Extra Payment Per Year: The same result in a single move. Make one additional full payment directly toward your principal each year. Many homeowners do this with a tax refund, work bonus, or whenever they have some extra cash set aside. Divide by 12 and Add It On: Take your monthly payment, divide it by 12, and add that amount to each month's payment. It's ultimately a small amount that gradually adds up to an extra full payment by the end of the year.
Read this blog to learn how and why each of these strategies work. Once you're ready to start putting your extra equity to work, reply to this email to reconnect with your UMortgage Loan Originator, or click here to learn about UMortgage programs designed to help you leverage your equity.
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